Where does your pricing model fall—higher or lower than the national average? The answer can be found in the 2015 Cost vs. Value Report (www.costvsvalue.com). Created yearly by REMODELING Magazine, in cooperation with the National Association of REALTORS® and REALTOR® Magazine, the report documents the average cost of a remodeling project in your area, giving you great competitive information without the need to research rival prices.
The report lists 36 popular remodeling projects and publishes their average nationwide prices, including labor, material and subtrade expenses, plus industry-standard overhead and profit. Note, however, that prices are based on generic projects and do not account for personalized design choices. So, you could also use this report to explain a higher price to your customers because of customized design or features.
For example, a midrange steel entry door replacement costs $1,230 on average nationwide. Is your project less expensive than that number? If so, you can show the homeowner how your pricing is better than the national average. If it’s more expensive, then you might need to justify the higher price.
You can also view the average cost in your region. If your company is in the Pacific region—Alaska, Washington, Oregon and California—the average cost of that same project is $1,366. Additionally, you can also check your local city for cost details. For example, if you are in Bakersfield, Calif., that same door replacement costs $1,302 on average. If you are not in a major area documented by the report, you can pick the next closest location to help better compare.
Nationwide, the average costs of some popular remodeling projects include:
- Bathroom remodel: $16,724
- Minor kitchen remodel: $19,226
- Roofing replacement: $19,528
- Window replacement: $11,198
- Fiberglass entry door replacement: $2,926
With all home improvement projects, financing options can remove barriers homeowners may have about the affordability of their project. There are great payment options available for your customers, including a Same-As-Cash Loan and a low monthly payment loan option with either a zero interest or reduced interest rate. Helping your customer understand and choose these options greatly increases your ability to close the sale.
As you prepare estimates for remodeling jobs for customers, consider how your costs stack up against the national, regional and local averages. You can then use this information to help your customers better understand the value they are getting by choosing your company to do the project.
For the full report, visit www.costvsvalue.com.
